Using Vertical Analysis on the Income Statement, a Company's Net

question 31

True/False

Using vertical analysis on the income statement, a company's net income as a percentage of net sales is 15%; therefore, the cost of goods sold as a percentage of net sales must be 85%.

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Definitions:

Skewed

A description of data or distribution that is not symmetrical, leaning more heavily to one side, either to the right or left.

Symmetric

Having proportions that are well balanced or proportions that mirror each other on either side of a central axis.

Distribution Shape

The form or appearance of the graphical representation of a dataset, indicating how data is dispersed or spread.

Standard Deviation

A statistic that quantifies the dispersion or spread of a set of numerical data from its mean.